AAR CORP (AIR) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:AIR • US0003611052

113.09 USD
+6.22 (+5.82%)
At close: Feb 6, 2026
113.09 USD
0 (0%)
After Hours: 2/6/2026, 8:17:25 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

AIR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 72 industry peers in the Aerospace & Defense industry. AIR has an average financial health and profitability rating. AIR is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year AIR was profitable.
  • In the past year AIR had a positive cash flow from operations.
  • In the past 5 years AIR has always been profitable.
  • Each year in the past 5 years AIR had a positive operating cash flow.
AIR Yearly Net Income VS EBIT VS OCF VS FCFAIR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M 200M

1.2 Ratios

  • AIR has a Return On Assets (2.90%) which is comparable to the rest of the industry.
  • Looking at the Return On Equity, with a value of 6.03%, AIR is in line with its industry, outperforming 54.17% of the companies in the same industry.
  • The Return On Invested Capital of AIR (8.32%) is better than 72.22% of its industry peers.
  • AIR had an Average Return On Invested Capital over the past 3 years of 7.36%. This is in line with the industry average of 8.66%.
  • The last Return On Invested Capital (8.32%) for AIR is above the 3 year average (7.36%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.9%
ROE 6.03%
ROIC 8.32%
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
AIR Yearly ROA, ROE, ROICAIR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8

1.3 Margins

  • AIR has a Profit Margin of 3.17%. This is comparable to the rest of the industry: AIR outperforms 55.56% of its industry peers.
  • In the last couple of years the Profit Margin of AIR has grown nicely.
  • AIR has a Operating Margin of 9.40%. This is comparable to the rest of the industry: AIR outperforms 58.33% of its industry peers.
  • In the last couple of years the Operating Margin of AIR has grown nicely.
  • With a Gross Margin value of 19.29%, AIR is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
  • AIR's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 9.4%
PM (TTM) 3.17%
GM 19.29%
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
AIR Yearly Profit, Operating, Gross MarginsAIR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • AIR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for AIR has been increased compared to 1 year ago.
  • AIR has more shares outstanding than it did 5 years ago.
  • AIR has a better debt/assets ratio than last year.
AIR Yearly Shares OutstandingAIR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M
AIR Yearly Total Debt VS Total AssetsAIR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • An Altman-Z score of 3.56 indicates that AIR is not in any danger for bankruptcy at the moment.
  • AIR has a Altman-Z score (3.56) which is comparable to the rest of the industry.
  • AIR has a Debt/Equity ratio of 0.61. This is a neutral value indicating AIR is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.61, AIR is doing worse than 63.89% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF N/A
Altman-Z 3.56
ROIC/WACC0.8
WACC10.4%
AIR Yearly LT Debt VS Equity VS FCFAIR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • A Current Ratio of 2.84 indicates that AIR has no problem at all paying its short term obligations.
  • The Current ratio of AIR (2.84) is comparable to the rest of the industry.
  • AIR has a Quick Ratio of 1.31. This is a normal value and indicates that AIR is financially healthy and should not expect problems in meeting its short term obligations.
  • AIR has a Quick ratio (1.31) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.84
Quick Ratio 1.31
AIR Yearly Current Assets VS Current LiabilitesAIR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 26.72% over the past year.
  • The Earnings Per Share has been growing by 12.75% on average over the past years. This is quite good.
  • The Revenue has grown by 15.40% in the past year. This is quite good.
  • The Revenue has been growing slightly by 6.06% on average over the past years.
EPS 1Y (TTM)26.72%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%31.11%
Revenue 1Y (TTM)15.4%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%15.92%

3.2 Future

  • AIR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.19% yearly.
  • The Revenue is expected to grow by 1.07% on average over the next years.
EPS Next Y22.08%
EPS Next 2Y19.47%
EPS Next 3Y18.19%
EPS Next 5YN/A
Revenue Next Year18.09%
Revenue Next 2Y14.21%
Revenue Next 3Y11.37%
Revenue Next 5Y1.07%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
AIR Yearly Revenue VS EstimatesAIR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B
AIR Yearly EPS VS EstimatesAIR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6

More info and screens

Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 25.64, the valuation of AIR can be described as expensive.
  • Based on the Price/Earnings ratio, AIR is valued cheaper than 90.28% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.92, AIR is valued at the same level.
  • With a Price/Forward Earnings ratio of 20.32, AIR is valued on the expensive side.
  • AIR's Price/Forward Earnings ratio is rather cheap when compared to the industry. AIR is cheaper than 94.44% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 27.78. AIR is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 25.64
Fwd PE 20.32
AIR Price Earnings VS Forward Price EarningsAIR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, AIR is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 15.18
AIR Per share dataAIR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • AIR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of AIR may justify a higher PE ratio.
  • AIR's earnings are expected to grow with 18.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.16
PEG (5Y)2.01
EPS Next 2Y19.47%
EPS Next 3Y18.19%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • AIR does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

AAR CORP

NYSE:AIR (2/6/2026, 8:17:25 PM)

After market: 113.09 0 (0%)

113.09

+6.22 (+5.82%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)01-06
Earnings (Next)03-25
Inst Owners97.11%
Inst Owner Change-0.27%
Ins Owners1.93%
Ins Owner Change-4.46%
Market Cap4.47B
Revenue(TTM)2.97B
Net Income(TTM)94.10M
Analysts83.64
Price Target107.83 (-4.65%)
Short Float %3.59%
Short Ratio2.88
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.81%
Min EPS beat(2)8.56%
Max EPS beat(2)13.06%
EPS beat(4)4
Avg EPS beat(4)9.37%
Min EPS beat(4)1.68%
Max EPS beat(4)14.17%
EPS beat(8)8
Avg EPS beat(8)6.16%
EPS beat(12)12
Avg EPS beat(12)5.88%
EPS beat(16)16
Avg EPS beat(16)5.63%
Revenue beat(2)2
Avg Revenue beat(2)4.72%
Min Revenue beat(2)3.12%
Max Revenue beat(2)6.33%
Revenue beat(4)3
Avg Revenue beat(4)3.22%
Min Revenue beat(4)-3.93%
Max Revenue beat(4)7.38%
Revenue beat(8)5
Avg Revenue beat(8)1.93%
Revenue beat(12)8
Avg Revenue beat(12)2.36%
Revenue beat(16)11
Avg Revenue beat(16)2.07%
PT rev (1m)9.71%
PT rev (3m)14.22%
EPS NQ rev (1m)4.81%
EPS NQ rev (3m)4.62%
EPS NY rev (1m)5.58%
EPS NY rev (3m)5.27%
Revenue NQ rev (1m)2.41%
Revenue NQ rev (3m)9.97%
Revenue NY rev (1m)1.95%
Revenue NY rev (3m)6.82%
Valuation
Industry RankSector Rank
PE 25.64
Fwd PE 20.32
P/S 1.51
P/FCF N/A
P/OCF 3195.6
P/B 2.87
P/tB 6.27
EV/EBITDA 15.18
EPS(TTM)4.41
EY3.9%
EPS(NY)5.57
Fwd EY4.92%
FCF(TTM)-0.84
FCFYN/A
OCF(TTM)0.04
OCFY0.03%
SpS75.02
BVpS39.46
TBVpS18.04
PEG (NY)1.16
PEG (5Y)2.01
Graham Number62.58
Profitability
Industry RankSector Rank
ROA 2.9%
ROE 6.03%
ROCE 10.53%
ROIC 8.32%
ROICexc 8.56%
ROICexgc 12.77%
OM 9.4%
PM (TTM) 3.17%
GM 19.29%
FCFM N/A
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
ROICexc(3y)7.68%
ROICexc(5y)7.26%
ROICexgc(3y)10.94%
ROICexgc(5y)9.53%
ROCE(3y)9.32%
ROCE(5y)8.8%
ROICexgc growth 3Y18.86%
ROICexgc growth 5Y36.52%
ROICexc growth 3Y7.16%
ROICexc growth 5Y28.07%
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
F-Score7
Asset Turnover0.92
Health
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF N/A
Debt/EBITDA 2.83
Cap/Depr 60.38%
Cap/Sales 1.17%
Interest Coverage 3.73
Cash Conversion 0.42%
Profit Quality N/A
Current Ratio 2.84
Quick Ratio 1.31
Altman-Z 3.56
F-Score7
WACC10.4%
ROIC/WACC0.8
Cap/Depr(3y)80.23%
Cap/Depr(5y)64.82%
Cap/Sales(3y)1.34%
Cap/Sales(5y)1.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.72%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%31.11%
EPS Next Y22.08%
EPS Next 2Y19.47%
EPS Next 3Y18.19%
EPS Next 5YN/A
Revenue 1Y (TTM)15.4%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%15.92%
Revenue Next Year18.09%
Revenue Next 2Y14.21%
Revenue Next 3Y11.37%
Revenue Next 5Y1.07%
EBIT growth 1Y65.62%
EBIT growth 3Y32.05%
EBIT growth 5Y42.38%
EBIT Next Year50.8%
EBIT Next 3Y23.82%
EBIT Next 5YN/A
FCF growth 1Y-217.73%
FCF growth 3Y-71.08%
FCF growth 5YN/A
OCF growth 1Y-97.72%
OCF growth 3Y-21.7%
OCF growth 5YN/A

AAR CORP / AIR FAQ

What is the ChartMill fundamental rating of AAR CORP (AIR) stock?

ChartMill assigns a fundamental rating of 5 / 10 to AIR.


What is the valuation status of AAR CORP (AIR) stock?

ChartMill assigns a valuation rating of 5 / 10 to AAR CORP (AIR). This can be considered as Fairly Valued.


Can you provide the profitability details for AAR CORP?

AAR CORP (AIR) has a profitability rating of 6 / 10.


How financially healthy is AAR CORP?

The financial health rating of AAR CORP (AIR) is 4 / 10.


What is the expected EPS growth for AAR CORP (AIR) stock?

The Earnings per Share (EPS) of AAR CORP (AIR) is expected to grow by 22.08% in the next year.